Martin Marietta Materials, Inc. Files 2023 Annual Report on Form 10-K

Ticker: MLM · Form: 10-K · Filed: Feb 23, 2024 · CIK: 916076

Martin Marietta Materials INC 10-K Filing Summary
FieldDetail
CompanyMartin Marietta Materials INC (MLM)
Form Type10-K
Filed DateFeb 23, 2024
Risk Levelmedium
Pages14
Reading Time17 min
Key Dollar Amounts$315.0 million, $26.3 million, $2.1 billion, $2.05 billion
Sentimentneutral

Sentiment: neutral

Topics: 10-K, Annual Report, Martin Marietta Materials, Financials, SEC Filing

TL;DR

<b>Martin Marietta Materials, Inc. has filed its annual report on Form 10-K for the fiscal year ending December 31, 2023.</b>

AI Summary

MARTIN MARIETTA MATERIALS INC (MLM) filed a Annual Report (10-K) with the SEC on February 23, 2024. Filed Form 10-K for the fiscal year ended December 31, 2023. Company name: MARTIN MARIETTA MATERIALS INC. Central Index Key: 0000916076. Standard Industrial Classification: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]. IRS Number: 561848578.

Why It Matters

For investors and stakeholders tracking MARTIN MARIETTA MATERIALS INC, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial health, strategic direction, and potential future performance.

Risk Assessment

Risk Level: medium — MARTIN MARIETTA MATERIALS INC shows moderate risk based on this filing. The filing is a standard annual report (10-K), which typically contains a broad range of information. Specific risks and financial details would require a deeper dive into the document's content beyond the header information provided.

Analyst Insight

Review the full 10-K filing for detailed financial statements, management's discussion and analysis, and risk factors to understand Martin Marietta Materials' performance and outlook.

Key Numbers

Key Players & Entities

FAQ

When did MARTIN MARIETTA MATERIALS INC file this 10-K?

MARTIN MARIETTA MATERIALS INC filed this Annual Report (10-K) with the SEC on February 23, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by MARTIN MARIETTA MATERIALS INC (MLM).

Where can I read the original 10-K filing from MARTIN MARIETTA MATERIALS INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by MARTIN MARIETTA MATERIALS INC.

What are the key takeaways from MARTIN MARIETTA MATERIALS INC's 10-K?

MARTIN MARIETTA MATERIALS INC filed this 10-K on February 23, 2024. Key takeaways: Filed Form 10-K for the fiscal year ended December 31, 2023.. Company name: MARTIN MARIETTA MATERIALS INC.. Central Index Key: 0000916076.

Is MARTIN MARIETTA MATERIALS INC a risky investment based on this filing?

Based on this 10-K, MARTIN MARIETTA MATERIALS INC presents a moderate-risk profile. The filing is a standard annual report (10-K), which typically contains a broad range of information. Specific risks and financial details would require a deeper dive into the document's content beyond the header information provided.

What should investors do after reading MARTIN MARIETTA MATERIALS INC's 10-K?

Review the full 10-K filing for detailed financial statements, management's discussion and analysis, and risk factors to understand Martin Marietta Materials' performance and outlook. The overall sentiment from this filing is neutral.

How does MARTIN MARIETTA MATERIALS INC compare to its industry peers?

The company operates in the mining and quarrying of nonmetallic minerals sector, which is crucial for construction and infrastructure development.

Are there regulatory concerns for MARTIN MARIETTA MATERIALS INC?

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business and financial condition.

Industry Context

The company operates in the mining and quarrying of nonmetallic minerals sector, which is crucial for construction and infrastructure development.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business and financial condition.

What Investors Should Do

  1. Analyze the full 10-K for detailed financial statements and segment information.
  2. Review the 'Risk Factors' section for potential challenges and uncertainties.
  3. Examine the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' for insights into performance drivers.

Key Dates

Year-Over-Year Comparison

This is the initial 10-K filing provided for analysis; no prior filing data is available for comparison.

Filing Stats: 4,323 words · 17 min read · ~14 pages · Grade level 15.2 · Accepted 2024-02-23 14:36:46

Key Financial Figures

Filing Documents

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 14 ITEM 1B. UNRESOLVED STAFF COMMENTS 27 ITEM 1C. CYBERSECURITY 28 ITEM 2.

PROPERTIES

PROPERTIES 29 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 33 ITEM 4. MINE SAFETY DISCLOSURES 33 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 33 PART II 34 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 34 ITEM 6. RESERVED 35 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 66 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 68 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 111 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 111 ITEM 9B. OTHER INFORMATION 112 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 112 PART III 113 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 113 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 113 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 113 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 113 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 113 PART IV 114 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 114 ITEM 16. FORM 10-K SUMMARY 120

Item 1 – Business

Part I Item 1 – Business PAR T I

– BUSINESS

ITEM 1 – BUSINESS General Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource-based building materials company. The Company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 360 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. In 2023, aggregates gross profit accounted for 68% of the Company's consolidated total gross profit. Martin Marietta also provides cement and downstream products, namely, ready mixed concrete, asphalt and paving services, in targeted markets where the Company has a leading aggregates position. The Company's heavy-side building materials are used in infrastructure, nonresidential and residential construction projects. Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement, ready mixed concrete and asphalt and paving operations are reported collectively as the "Building Materials business". The Company also operates a Magnesia Specialties business with production facilities in Michigan and Ohio. The Magnesia Specialties business produces magnesia-based chemical products that are used in industrial, agricultural and environmental applications. It also produces dolomitic lime sold primarily to customers for steel production and soil stabilization. Magnesia Specialties' products are shipped to customers domestically and worldwide. On May 3, 2023, the Company divested its Stockton cement import terminal in California. On October 31, 2023, the Company divested the Tehachapi, California cement plant for $315.0 million in cash. In connection with the Tehachapi cement plant transaction, the Company recorded a $26.3 million pretax loss on divestiture in discontinued operations. Since October 1, 2021 and through their respective divestiture dates, the aforementioned California operations were classified as assets held for sale and reported as discontinued operations. As of De

Item 1 – Business

Part I Item 1 – Business Building Materials Business The profitability of the Building Materials business, which serves customers in the construction marketplace, is sensitive to national, regional and local economic conditions and construction cyclicality, which are in turn affected by fluctuations in levels of public-sector infrastructure funding; interest rates; access to capital markets; and demographic, geographic, employment and population dynamics. The heavy-side construction business is conducted outdoors, as are much of the Building Materials business' operations. Therefore, erratic weather patterns, seasonal changes, and other weather-related conditions, including precipitation, flooding, hurricanes, snowstorms, extreme temperatures, wildfires, earthquakes and droughts, can significantly affect production schedules, shipments, costs, efficiencies and profitability. Generally, the financial results for the first and fourth quarters are subject to the impacts of winter weather, while the second and third quarters are subject to the impacts of heavy precipitation. The Building Materials business markets its products primarily to the construction industry, with 36% of its 2023 aggregates shipments sold to contractors in connection with highway and other public infrastructure projects and the balance of its shipments sold primarily to contractors for nonresidential and residential construction projects. The Company believes the business' mix of public sector-related shipments lessens the impacts of fluctuations in nonresidential and residential, or private-sector, construction spending. Funding of public infrastructure, historically the Company's largest end-use market, is discussed in greater detail under " Building Materials Business' Key Considerations—Public Infrastructure " in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations ,'' of this Form 10-K. The Building Materials business covers a wide geograph

Item 1 – Business

Part I Item 1 – Business The Company generally acquires contiguous property around existing quarry locations. Such parcels can serve as buffer property or additional mineral reserves, assuming the underlying geology supports economical aggregates mining. In either instance, the acquisition of additional property around an existing quarry typically allows the expansion of the quarry footprint and extension of quarry life. Some locations having limited reserves may be unable to expand. Due to the nature of the indigenous aggregates supply in the midwestern United States, a long-term capital focus for the Company is underground limestone aggregates mines. Production costs are generally higher at underground mines than surface quarries since the depth of the aggregates deposits and the access to the reserves result in higher costs related to development, explosives and depreciation costs. However, these locations often possess marketplace transportation advantages that can lead to higher average selling prices than more distant surface quarries. The construction aggregates industry has been consolidating, and the Company has actively participated in the industry's consolidation. The Company's Board of Directors and management continue to review and monitor the Company's long-term strategic plans, commonly referred to as SOAR ( S trategic O perating A nalysis and R eview), which include assessing portfolio optimization strategies that include business combinations and arrangements with other companies engaged in similar businesses, investing in internal expansion projects in high-growth markets, divesting businesses or nonoperating assets that are not core or do not further management's strategy and pursuing new opportunities in the Company's existing markets or new markets. Acquisition opportunities include public companies, public company carve-outs and private sponsor-owned and family-owned businesses, as well as asset swaps and divestitures from companies execu

Item 1 – Business

Part I Item 1 – Business Cement consumption is dependent on the time of year and prevalent weather conditions. According to the Portland Cement Association, nearly two-thirds of U.S. cement consumption occurs in the six months between May and October. Approximately 70% to 75% of all cement shipments are sent to ready mixed concrete operators. The remainder is shipped to manufacturers of concrete-related products, contractors, materials dealers and oil well/mining/drilling companies. The Company's cement operations generally deliver their products upon receipt of customer orders or requests. Inventory for products is generally maintained in sufficient quantities to meet rapid delivery requirements of customers . Energy accounted for 18% of the cement total cost of revenues, excluding inventory change, in 2023. Therefore, cement profitability is affected by changes in energy prices and the available supply of these products. The Company currently has fixed-price supply contracts for portions of its natural gas, electricity and coal needs, but also consumes alternative fuel and petroleum coke. Further, profitability of the cement operations is also impacted by kiln maintenance, which typically is planned but requires a plant to be shut down for a period of time. Ready mixed concrete is measured in cubic yards and specifically batched or produced for customers' construction projects and then typically transported by mixer trucks and poured at the project site. The aggregates used for ready mixed concrete is a washed material with limited amounts of fines (such as dirt and clay). As of December 31, 2023, the Company operated 82 ready mixed concrete plants in Arizona and Texas, of which 20 plants located in the Austin and San Antonio region are classified as assets held for sale. These 20 plants were subsequently divested on February 9, 2024. Asphalt is most commonly used in surfacing roads and parking lots and consists of liquid asphalt, or bitumen, the binding med

Item 1 – Business

Part I Item 1 – Business Given high fixed costs, low capacity utilization can negatively affect the segment's results from operations. Management has shifted the strategic focus of the magnesia-based business to grow and diversify the specialty chemicals product portfolio to reliably produce at volume levels that support efficient operations. Accordingly, these products are less dependent on the steel industry than the dolomitic lime product line. Management expects future organic profit growth to result from increased pricing, commercialization of new products, entry into new or adjacent markets and optimization of overall product mix. The principal raw materials used in the Magnesia Specialties business are dolomitic limestone and magnesium-rich brine. Management believes that its reserves of dolomitic limestone and brine are sufficient to permit production at the current operational levels for the foreseeable future. The Magnesia Specialties business is highly dependent on rail transportation, particularly for movement of dolomitic lime from Woodville to Manistee and direct customer shipments of dolomitic lime and magnesia chemicals products from both Woodville and Manistee. The segment can be affected by the specific transportation and other risks and uncertainties outlined under Item 1A, " Risk Factors ," of this Form 10-K. Patents and Trademarks As of January 31, 2024, the Company owns, has the right to use, or has pending applications for patents pending or granted by the United States and various countries and trademarks related to its business. The Company believes that its rights under its existing patents, patent applications and trademarks are of value to its operations, but no one patent or trademark or group of patents or trademarks is material to the conduct of the Company's business as a whole. Customers The Company's products are sold principally to commercial customers in private industry. Although large amounts of construction materi

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